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HQ 968120

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May 17, 2006

CLA-2: RR:CTF:TCM 968120 ASM

CATEGORY: MARKING

Richard J. Block, Esq.
Mirsky & Block, PLLC
Attorneys at Law
303 South Broadway
Suite 222
Tarrytown, NY 10591

RE: Country of Origin Marking for Electric Disc Grater

Dear Mr. Block:

This is in response to your letter dated February 7, 2006, requesting a binding ruling letter on behalf of your client Zyliss USA Corporation, regarding the country of origin marking requirements for a product identified as an “Electric Disc Grater” (EDG). Photocopies of the EDG were submitted to Customs and Border Protection (CBP) for our review and consideration.

FACTS:

You indicate that the subject article, the EDG, closely resembles a food processor. The EDG’s dimensions are 8 ½ inches wide, 11 ½ inches deep, and 12 ¾ inches high. The product is intended to be used for grating and slicing foods. A citrus press accessory can also be attached to make fresh citrus juice.

According to your submission, all of the components for the subject product will be made in China except for the stainless steel discs which will be made in Germany, imported into China and then joined to the EDG in the assembly process along with all of the other China-made components. The EDG will have three such discs.

Your client believes that the appropriate country of origin marking for the EDG should be “Manufactured in China”. Your client also wishes to know if it would be acceptable to include the wording: “Discs made in Germany for Zyliss” next to the country of origin marking.

ISSUE:

What is the country of origin marking requirement for the product as described above? Can the product include the wording: “Discs made in Germany for Zyliss” next to the country of origin marking?

LAW AND ANALYSIS:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was "that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." See United States v. Friedlander & Co., 27 C.C.P.A. 297 at 302; C.A.D. 104 (1940).

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. 1304. Section 134.1(b) of the Customs and Border Protection (CBP) Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of manufacture, production, or growth. In order to change the country of origin, further work or material added to the article in another country must effect a substantial transformation. A substantial transformation occurs when the further work or material added in another country results in an article having a different name, character, or use. United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (CAD 98).

In this instance, all the components of the EDG are made in China and/or transformed in China through the assembly process. Thus, we find that that the country of origin of the EDG is China. Therefore, provided there is compliance with 19 CFR Part 134 and the goods are marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, the article may bear the words “Manufactured in China” to indicate the country of origin.

Section 134.46, CBP Regulations (19 CFR 134.46), contains more restrictive marking requirements designed to alleviate the possibility of misleading an ultimate purchaser with regard to the country of origin of an imported article. Specifically, 19 CFR 134.46 requires that, in instances where the name of any city or locality in the U.S., or the name of any foreign country or locality other than the name of the country or locality in which the article was manufactured or produced, appears on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letters or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," "Product of," or other words of similar meaning. CBP has ruled that in order to satisfy the close proximity requirement, the country of origin marking must appear on the same side(s) or surface(s) in which the name of the locality other than the country of origin appears. See Headquarters Ruling Letter (HQ) 559886, dated August 16, 1996.

In HQ 559886, supra, CBP held that figures manufactured in China from molds that were designed and fabricated in the U.S. could not bear the marking “Designed and Sculpted in the U.S.A.” in addition to the country of origin. CBP reasoned that such markings created the probability of confusion on the part of the ultimate purchaser. However, it was further noted in HQ 559886 that “Made in (country of origin) based on a U.S. design” or “Made in (country of origin) based on an original design created in the U.S. using a U.S. mold” satisfied the requirements of 19 U.S.C. 1304 and 19 CFR Part 134. In HQ 735368, dated June 30, 1994, CBP noted that the prominent display of country names on components parts, other than the country of origin of a fully assembled bicycle, could be very confusing and misleading to the ultimate purchasers of the bicycles. CBP offered several solutions noting that an acceptable approach would be to have one central country of origin marking for the bicycle, explaining that the country names on the components parts refer only to the origin of the component parts, e.g., “Bicycle made in Taiwan; origin of other components as marked”.

CBP has similarly approved central country of origin markings that specify the country of origin of the assembled good along with identification that component parts are from a separate country of origin, in the following rulings: HQ 733266, dated August 15, 1990 (“Engine Made in Brazil – country of origin of components parts as marked”); HQ 733981, dated June 3,1991 (“Assembled In Mexico; “Switch Made in USA”); HQ 559391, dated August 18, 1995 (“XL-2PK Value Pak Made in Mexico with components from (countries identified on various components”)); HQ 559261, dated February 13, 1996 (the country of origin must be set forth first in the order of presentation, if used in combination with component origin information); HQ 959608, dated September 12, 1996 (“Made in China, Dyed, Printed and Cut in Italy” or “Made in China, Designed in Italy”).

In order to avoid any possibility of confusion to the ultimate purchaser, we conclude that the requirements of 19 CFR 134.46 would be satisfied by using a central country of origin marking. Thus, we recommend a marking such as the following: “Electric Disc Grater Made in China; Discs manufactured in Germany for Zyliss”.

HOLDING:

The appliance identified as an Electric Disc Grater is properly marked with the country of origin if it bears the words, “Manufactured in China”. This marking must appear in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit. If the importer wishes to identify the country of origin of the discs, the product may be marked, for example, as follows: “Electric Disc Grater Made in China; Discs manufactured in Germany for Zyliss”.

A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.

Sincerely,

Gail A. Hamill, Chief
Tariff Classification and Marking Branch

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